Union Bank to Enter Microfinance Arena in AP

Tuesday, November 23, 2010

State-owned Union Bank of India (UBI) made its maiden foray into the micro-credit arena Monday (Nov. 22) with the launch of a new scheme covering 20 mandals in Andhra Pradesh, a state where microfinance activities were hitherto the preserve of private companies.

“We have decided to lend 20 mandals about Rs 50 lakh each and we would extend this to about 100 mandals in this fiscal, which will be about Rs 50 crore by way of cash credit facility. This is in addition to Self Help Group (SHG) financing that is taking place in the state,” UBI Chairman and Managing Director M V Nair said at a function to formally announce the scheme.